Get out of debt
How to get out of debt? With falling wages, rising unemployment, rising prices and higher taxes more and more people are feeling the pressure, falling into arrears and getting into debt. So how does the ordinary person get out of debt. There are many ways to get out of debt but at the end of the day its really down to spend less or earn more either way you wont get out of debt with out taking action. The first thing you need to do is to set out your how to get out of debt plan. You need to take out a piece of paper draw a line down the middle any on one side you write the things you need and on the other side the things you dont. For example you need food but you dont need Sky TV. It might be painful but you know what you have to do next.
Get out of debt by cutting back
Whether you have decided to get out of debt by making savings, earning more or a mixture of both the first thing that you need to do is cut out all your unnecessary spending. It will be painful but its short term pain for long term gain. So lets look at how you can make savings.
Get out of debt tips and ideas
- Only spend on the what you have to.
- Cut up the credit card and use cash for everything.
- If you are spinning credit cards pay them off one at a time as it is impossible to clear more than one card at a time.
- Analyse you mobile provider and billing plan. I saved €60 a month by doing this.
- Use washing machines and dishwashers in off peak hours.
- If you have savings use them to pay off debt as the interest on loans far exceed the interest on savings.
- Do free things, instead of going to the cinema go to the park.
- Dont get caught out buying bargains, its only a bargain if you need it.
Get out of debt by earning more
There is only so much you can cut back so after making savings and you still find yourself with not enough money coming in the only coarse of action is to earn more. Sixteen years ago I found myself in this position, I had cut back on everything but I was still not out of debt. I knew I needed to earn more but I did not know where to start then I came across a simple work from home opportunity and within 14 months I was out of debt and had started to save again. Find out how you can earn more and get out of debt.